Important health insurance information required to be provided to your employees by October 1, 2013

If you have at least one employee and generate at least $500,000 in annual revenue, there another healthcare requirement that applies to you”and you must act by Oct. 1.

You are required to send a notice to all employees via first-class mail or electronically* by October 1 informing them about the new government-run health insurance exchanges. The notification requirement applies to any business regulated under the Fair Labor Standards Act. The letters must be sent to all employees, full-time and part-time and regardless of their benefits plan status. You are not required to provide a separate notice to dependents covered under the plan who are not employees. It is unclear what the non-compliance penalty will be. However, it could be as much as $100 per employee per day.

The letters must let the employees know that the exchange exists and provide other details to help employees understand how the exchange could help them. The letters must also be sent to any new employees who get hired after October 1, within 14 days of the employee start date.

The Department of Labor has released sample notices in order to help employers satisfy this notification requirement. Employers who offer health insurance to all or some of their works can find a sample notice herewhile businesses that do not offer health insurance coverage will use an alternative notice found here.

Most health insurance providers are preparing this letter for their clients, contact your provider if you haven't already received notification. If you do not offer a health plan, we can assist you with model language from the Department of Labor.

*Electronic transmission is required to meet the Department of Labor electronic disclosure safe harbor rules.